Analyzing the scenario, the new and the large company can control all prices and services provided, generating a monopoly situation.
<h3 /><h3>What is monopoly?</h3>
It is a market situation where a company controls the market, being the entity responsible for establishing the price for a good or service, characterizing a situation of imperfect competition.
Therefore, in the monopoly market, consumers are harmed because they do not have the right to choose which products or services they want to consume, in addition to the fact that the price charged may be higher in a situation of perfect competition.
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Answer:
Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.
Explanation:
Giving the following information:
Honda Motor Company is considering offering an $1800 rebate on its minivan
New price $30200
Old price $28400.
The marketing group estimates that this rebate will increase sales over the next year from 42000 to 53900 vehicles.
Honda's profit margin with the rebate is $5650 per vehicle.
Normal price:
Income= (5650+1800)*42000= $312,900,000
New price:
Income= 5650* 53900= $304,535,000
Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.
Answer: bilateral contract
Explanation: In simple words, bilateral contract refers to an agreement under which two individual parties agree to satisfy the obligations of performing a specific activity.
In the given case, Peter promises to paint the store of Mary and Mary promises to pay him $3000.
Hence from the above we can conclude that the given case illustrates bilateral contract.
Answers:
It won't be advisable to transform this executive agencies to independent agencies, because it will reduce the power of the president, and therefore reducing the ability of the president to carry on it's agenda.
ADVANTAGE OF THE TRANSFORMATION:
1) Their will discharge their duties without any political influence.
2) The president will not longer have strong influence on their decision.
3) Each head of the agency will have a specific time and duration for it plans to be achieved before the end of it's tenure.
DISADVANTAGE OF THE TRANSACTION:
1) It will develop fight for power and control in the decisions of the agency, between the president and the head of the agency.
2) it will take away harmony been seen between the president office and the agency.
3) it will reduce the power been invested in the president in carrying on a better administration.
Executive heads owe allegiance to the president, because their are appointed by the president, and can only be removed by the president. During appointment, the president usually appoints it's loyalist that is qualified to head the agency. This is why some of their heads resign, when their can no longer cope with the will of the president.
Answer:
an inflationary spiral is likely to occur
Explanation:
If the government uses its stabilization policies to maintain full employment under conditions of cost-push inflation: "an inflationary spiral is likely to occur."
Given that the cost-push inflation is a form of inflation in which prices of commodities increases as a result of wages and raw materials cost increase, and stabilization policy is a means by which the government tend to sustain economic development with little changes in price.
Hence, when stabilization policy is used to maintain full employment under conditions of cost-push inflation there is a high tendency to result in a continuous rise in prices due to the cost of wages and materials increase.